House builders considering ‘legality’ of government threats over cladding funding

In its latest response, the HBF said it has “engaged constructively with government to find solutions and remove the burden of costs to remediate buildings from leaseholders”, but said the government’s open letter made it “clear” it was “not taking the same approach”.

“The latest proposal, an open-ended and variable annual tax on UK home builders at a rate decided by a government department each year, under the threat of being unable to operate in the UK, is clearly not proportionate,” it added. 

The trade body said it is “considering our position on the legality of the proposals”, which it said “target only UK home builders who are already working on their buildings and not the plethora of foreign companies and investment vehicles responsible for a large proportion of the remaining buildings that require remediation”.

The government’s open letter set out six commitments that it wants developers to sign up to (see box below), including a contribution to a new fund for buildings between 11 and 18 metres tall.

According to the HBF, UK house builders have already spent or committed roughly £1bn to remediate buildings.

It is calling on the government to “ensure material providers, including overseas companies that manufactured and sold the materials that have created the problems, are part of the solution”.

In its open letter, the government said it was engaging with product manufacturers around what level of contributions they will be forced to make to help fix the crisis. 

The HBF also urged the government to “recognise the failings of its building regulations regime on which the industry has relied”.